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Seòmar agus comataidhean

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 31 March 2025
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Displaying 3006 contributions

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Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

I turn to the vexed question of the estimates and adjustments that take place. We are looking at the income tax revenues for 2022-23. There is an estimate that covers about £1 billion-worth of tax revenue out of a tax take of £15 billion that year. That seems to us to be, on the surface, quite a high figure. Is that the level of estimate and adjustment that you would expect? Is it an apportioning of a United Kingdom figure that has been transposed into the Scottish context? To what extent is an adjustment made for the profile of taxpayers in Scotland?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

So 15 to 20 per cent is due to behavioural factors. The rest is due to things such as the fiscal framework and so on, is it not?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Would it have been at stage 1?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

What if the Parliament had rejected that announcement? The governing party does not necessarily have a majority, although there was a coalition at that time. If the Parliament had decided that it did not want the advanced rate to be introduced or that it wanted a variation of the advanced rate, how would you have coped with that?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Thank you for that. Graham Simpson has some questions for you.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

I will do my level best to get things right. The advanced rate came in, but it was not agreed until February 2024, at stage 3 of the budget process in the Scottish Parliament. When does your system have to be set up? Is it too short notice to set it up between February and 6 April?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Just to be clear, Mr Athow, when would you start that preparation work? When did you start it in the case of the advanced rate?

Public Audit Committee [Draft]

Decision on Taking Business in Private

Meeting date: 26 March 2025

Richard Leonard

Good morning. I welcome everyone to the 11th meeting in 2025 of the Public Audit Committee.

Agenda item 1 is to decide whether to take items 3, 4 and 5 in private. Do we agree to do so?

Members indicated agreement.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Agenda item 2 is further consideration of the National Audit Office’s report, “Administration of Scottish income tax 2023-24”, along with the Auditor General for Scotland’s assurance report. I welcome our witnesses to the meeting. We are joined from the Scottish Government by Alyson Stafford, who is the director general Scottish exchequer, and Lorraine King, who is the deputy director for tax strategy, engagement and performance. We are also pleased to welcome back, from His Majesty’s Revenue and Customs, Jonathan Athow, who is the director general for customer strategy and tax design, and Phil Batchelor, who is the deputy director for income tax policy.

Before we get to our questions, I invite Jonathan Athow and Alyson Stafford to make short opening statements.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Thank you both for that. I have a question for you in turn. Do you accept the key messages that are contained in the Auditor General’s report on his inquiry into the NAO audit of the administration of Scottish income tax?